Indonesia to cut defence spending by 1.7%

JAKARTA, -- Indonesia intends to reduce defence expenditure by 1.7% to IDR95.9 trillion (USD6.7 billion) in 2016, according to figures contained within the draft budget.

The reduction in spending follows a 17.1% increase in 2015 and represents only the second time the defence budget has been cut in the last decade.

Draft budget documentation also shows that actual spending on defence in 2015 is expected to reach around IDR102.3 billion, an increase of 4.8% or IDR4.7 trillion over the revised budget allocation planned by the government.

As such the draft budget for 2016 ostensibly represents a 6.2% reduction compared with the funding provided for defence in 2015.

Indonesian army Leopard tanks drive during celebrations of the 69th anniversary of the Indonesian Armed Forces (TNI) in Surabaya, East Java, Indonesia, 07 October 2014.